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Labat: Van Rooyen tackles Fin24

Oct 09 2006 17:36 Chimwemwe Mwanza

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Johannesburg - Labat CE Brian Van Rooyen is not one to take criticism lying flat. His penchant to protect his dignity through legal redress - especially in instances that he deems impugning to his character - is after all well documented.

And Fin24's coverage of the Labat group AGM seems to have racked his nerve a bit.

Reacting to Fin24's report on the proceedings of the JSE listed technology group's AGM; a livid Van Rooyen slammed Fin24's report - which also outlined his plans to separately list Labat Traffic Solutions (LTS) - as inaccurate.

Van Rooyen was particularly incensed by a remark in which shareholder activist Jan Kruger described Labat "as one big mess with van Rooyen at the centre of a mess that's largely contributed to shareholder value destruction".

"Just like everyone in attendance, I gave Kruger an opportunity to express their concerns and ask questions of which he responded that he was satisfied with the proceedings.

"What you reported was certainly not uttered during the proceedings of the AGM and neither was it said to my face. With a shareholding stake of about 55%, my consortium is the biggest shareholder in Labat; is the inference in Kruger's statement that I have presided over the destruction of my consortia's value?"

'All the loss making business units were sold'

Van Rooyen explained that Labat's R65m overdraft, which has since been settled in the main by disposal proceeds and director's loans was attributed to the loss making ACME chain stores which has since been sold and not semi conductor manufacturing subsidiary, SAMES.

"No subsidiary in Labat is debt laden; all the loss making business units were sold and that's a point I would like to emphasise."

Van Rooyen further explained that Labat won't be disposing SAMES but would instead continue with the restructuring of the business.

"What is correct is that we are in talks with a foreign partner to capitalise the business and add the necessary expertise needed."

However, van Rooyen still reiterated his plans to separately list LTS.

 
 
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